Interactive gaming systems allow users to win or lose money by placing wagers according to the rules of a game. Players wager money against the operator of the interactive gaming system or against other players in a variety of games. Financial security for players is a crucial aspect of an interactive gaming system.
In typical systems, the interactive gaming operator maintains a player's account for each player with a balance of money available to the player to wager. A player transfers money to the interactive gaming system to fund a player's account. These transfers are typically executed using credit card, bank wire, an automated clearing house, or other money transfer system. Completing the transfer places funds in the player's account on the interactive gaming system. As the player wins and loses wagers, funds are credited and debited from the player's account on the interactive gaming system. A player can play several sessions and leave player funds in the player's account on the interactive gaming system. When a player desires to withdraw the player funds, the player instructs the interactive gaming system to transfer funds to the player's chosen financial institution.
This financial arrangement has drawbacks. There is typically a delay in transferring payments from the user's financial institution to the interactive gaming system, and a similar delay in transferring payments from the gaming system to the user's financial institution. In addition, the interactive gaming system acts as a financial fiduciary for the user, which places additional regulatory burdens on the interactive gaming system beyond the regulations relating to operating wagering games and requires further security measures to protect player funds. Moreover, players may be hesitant to place significant funds with a non-financial entity operating an interactive gaming system.